5 important tips for new landlords in Perth
Becoming a landlord is a huge milestone and one that you have plenty of reasons to be excited about.
Whether you just purchased your first investment or you’re renting out an existing property for the first time, being a landlord can contribute to your financial and lifestyle goals. The opportunity is there, but it’s up to you to make the most of your investment.
What does it take to thrive as a landlord?
Here are five important tips for landlords in Perth, WA.
Know the relevant laws and regulations
It’s a good idea to have a basic understanding of the laws and regulations that pertain to Perth landlords and tenants. The main laws that govern renting in WA are the Residential Tenancies Act 1987 and the Residential Tenancies Regulations 1989.
When you look at these laws, you’ll notice there’s a lot to learn. Don’t worry, you don’t need to memorise all the details to be successful as a landlord, but be sure to familiarise yourself with the essentials such as:
- How security bonds work
- Rates and taxes for rental income
- Damages and repairs and how to handle disputes, and
- Notice periods.
You’ll find a lot of the legal information you need including details for renting a home or unit, bond disputes, and tips for dealing with maintenance and property safety concerns at the Western Australia government’s renting a home resource page.
Be clear on all related costs
What’s one of the biggest mistakes property investors and owners make when renting out a property?
Underestimating the costs. When you rent to tenants, you’ll have to factor in a number of ongoing and one-off costs. Ongoing costs include:
- Building and landlord insurance
- Council and water rates
- Body corporate fees
- Property taxes
You’ll also need to be ready to cover maintenance and repair costs. The reality is, in order to reap the rewards of renting a property, you’ll need to invest some money into the property to keep it in good condition, minimise financial risks, and optimise your long-term returns. It’s a good idea to make sure you have plenty of room within your budget to cover these expenses.
Protect your investment
Anything from damage caused by your tenants to desertion and unpaid utility bills can leave you with unexpected costs. How do landlords protect their interests? With bonds and insurance.
You can request a bond as part of your rental agreement. In WA, the bond must be lodged with the Bond Administrator, which is the state’s residential tenancies bond authority. Bonds are usually for 4 week’s rent per tenancy. If you allow your tenant to keep pets, you can also request a pet bond for pets that can carry parasites capable of harming humans.
Landlord & Building insurance is another good choice for protecting your property. Your policy may protect you from the unexpected costs due to natural disasters, a fire, or other events that are outside of your control.
Don’t rush into a tenancy
As Perth property managers who specialise in low vacancy rates, we understand the urge to fill your property quickly. But, the first tenancy application doesn’t automatically mean the best tenant for your property.
Don’t feel pressured to choose the first tenants who come along. Nor should you rush to rent your property before it’s ready. If you do, you could spend more money and effort in the long run.
Don’t go at it alone
Even if you follow all of these landlord tips for Perth property owners, you could still run into costly surprises and headaches. The good news is, you don’t have to do this alone, and as a new landlord, having professional support can make a world of difference.
Consider using a property manager to handle a lot of the work involved. A property management company with experience in the Perth market can help you navigate your journey as a landlord. You can also talk to financial professionals including an accountant, financial advisor, and insurance services to help you develop long-term strategies that align with your financial and lifestyle goals.
HERE to help
We’re HERE to support you along the way.
Find out how to choose the right property manager so you can remove a lot of the stress and hassle of renting to tenants.
Contact the HERE team to discuss how we can help you maximise your property’s potential while minimising risk with a tailored approach focused on your goals.